Given the information, prepare a sales budget in dollars, a raw materials inventory purchase budget in units and cost, and a production budget in units and cost. Sales forecast 10,000 units of ASD-34 at $159 each Beginning raw materials inventory 1,000 units of UIO-89 at a cost of $12.00 each Ending raw materials inventory 2,000 units of UIO-89 Beginning finished goods inventory 3,000 units of ASD-34 Ending finished goods inventory 4,000 units of ASD-34 Each unit of ASD-34 produced requires: 2 units of UIO-89 2 direct labor hours at $25.00 per hour
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Given the information, prepare a sales budget in dollars, a raw materials inventory purchase budget in units and cost, and a production budget in units and cost.
|
Sales |
10,000 units of ASD-34 at $159 each |
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|
|
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Beginning raw materials inventory |
1,000 units of UIO-89 at a cost of $12.00 each |
|
Ending raw materials inventory |
2,000 units of UIO-89 |
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|
|
|
Beginning finished goods inventory |
3,000 units of ASD-34 |
|
Ending finished goods inventory |
4,000 units of ASD-34 |
Each unit of ASD-34 produced requires:
2 units of UIO-89
2 direct labor hours at $25.00 per hour
Manufacturing overhead at 150 percent of direct labor cost
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